CO2 reduction ‘not a business priority’

London - More than eight out of ten UK manufacturers say Government targets to reduce CO2 emissions are unrealistic, while significant numbers do not see the benefit of a small carbon footprint and are relegating carbon reduction measures to concentrate on managing costs. These are among the findings of npower's Business Energy Index (nBEI), an annual report tracking business opinion on energy use and carbon emissions.

 In this latest index the majority of manufacturers (85%) said the target to reduce CO2 emissions by 80% by 2050 was unrealistic. Attitudes on the potential commercial opportunities of a small carbon footprint are equally downbeat; only 41% think new business will occur as a result of reducing emissions, compared to 46% in npower’s 2008 index.

The findings also reveal that the economic downturn is leading businesses to prioritise finances over CO2 reduction; 97% said they are currently more concerned with reducing costs than emissions and only 47% of manufacturers believe it is important for the UK to play a leading role in reducing global emissions.

Despite these opinions the index reveals a renewed focus on energy efficiency measures, with the importance attached to energy efficiency at its highest level since 2005. Furthermore, 96% of manufacturers say they are likely to increase energy efficiency initiatives, and while this was primarily for cost benefit, the same measures would also lead to emission reduction.

Energy efficiency was also rated as the most popular action for businesses to take to reduce emissions, with 55% giving this answer ahead of changing processes (38%). Also, the number of manufacturers employing fulltime staff responsible for energy management has risen this year to 81% compared to 54% in the last index.

The index suggests that more needs to be done to support businesses in carbon reduction measures. Despite 70% of manufacturing companies saying they are ready to participate in the Carbon Reduction Commitment when it launches in 2010, 44% said they thought the Government did not offer an adequate level of advice on the scheme which is estimated to affect 5,000 organisations in the UK.

“The index shows that most businesses do not see commercial benefits from having a small carbon footprint, but we can’t escape the fact that climate change legislation and the strength of public feeling mean CO2 reduction remains important," said Julia Lynch-Williams, director of energy services at npower.

"The Government has set the UK on a path toward a low carbon economy and must now continue to stress to businesses the opportunities that will come from low carbon operations," she added. “While it’s understandable that businesses are more focused on the bottom-line in the current economic crisis, we would encourage them to see energy management as an effective means of reducing emissions as well as costs.”

The npower Business Energy Index can be downloaded at www.npower.com/businessenergy <http://www.npower.com/businessenergy>